A redrafted Code of Fundraising Practice is expected in 2025, but more recently the Fundraising Regulator has said it plans to clarify its requirements around how fundraisers are paid.
Currently, the Code of Fundraising Practice states that charities and third-party fundraisers should not use commission-based payments unless they have “explored and exhausted all other sources of fundraising investment”. If a charity uses payment-by results model, they are required to have approval over such payments. Alternatively, there should be a measure in place to ensure excessive payments are not allowed.
The Regulator’s Policy Manager, Conor Gibson, noted in an update in June that its committees have approved its proposals to make the code more focused on principles-based rules. This comes as a result of a market-inquiry report regarding the use of subcontracting in face-to-face fundraising, in which the Regulator concluded that performance-related pay “can be a success both financially and in regard to compliance”.
The latest draft of the Code has been completed by the Regulator, which is currently seeking legal advice ahead of a final public consultation which is scheduled for September 2024. We encourage charity leaders to keep an eye out and provide valuable feedback in September. Once the new Code is published, charities will have six months to update their processes.
